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Updated, 4:50 p.m. | A federal judge this morning refused to block New York City from requiring that global positioning systems, video screens and credit- and debit-card readers be installed in taxicabs.

Six cab owners and two cabdrivers had brought a lawsuit against the Taxi and Limousine Commission in Federal District Court in Manhattan. In a 21-page ruling [pdf], the judge, Richard M. Berman, rejected the plaintiffs’ claims and refused to block the city from enforcing the new rules.
The technology requirements — which include text messaging for use in emergencies and automated recording of taxicab trips — are to take effect on Oct. 1. As of last Friday, about 2,280 of the city’s 13,085 yellow cabs had installed the technology, and 12,950 cabs met an Aug. 1 deadline to sign contracts to have the equipment installed, leaving about 135 cabs — below 1 percent — whose owners have refused to comply with the new rules.

The eight cabbies, all members of the New York Taxi Workers Alliance, had filed their lawsuit on Sept. 19, asserting that the technology requirements infringed on cab owners’ property rights, without the due process of law. The plaintiffs also argued that the G.P.S. technology would violate their “fundamental right to privacy.”

In response, lawyers for the city defended the new technology, arguing that the G.P.S. technology would improve the city’s ability to help customers who leave property behind in cabs, that text messaging will allow the authorities to contact drivers in emergencies, and that the passenger video screens and credit- and debit-card readers would be a valuable amenity for passengers. The city also argued that the technology requirements were understood to be part of a deal in which the city also agreed to raise fares. The 20 percent fare increase, approved in 2004, took effect in 2006.

Judge Berman found that the Taxi and Limousine Commission had adopted the technology rules properly. He noted that courts have upheld the constitutionality of previous taxi-related rules, including requirements that cabs have auxiliary air conditioning units to cool the rear compartment, be accessible to wheelchairs, have a partition between the front and rear seats and maintain roof lights on top of the vehicle.

Judge Berman also noted that in a similar case in Philadelphia earlier this year, a judge refused to halt the Philadelphia Parking Authority from requiring cab companies to install G.P.S. devices as part of an automated dispatch system.

Judge Berman also found the New York City drivers’ privacy claims unpersuasive. He noted that “practical steps have been taken by the T.L.C. to help maintain the confidentiality of electronic trip data,” and asserted that it was unlikely that courts would find “a legitimate expectation of privacy” in public cabs. Moreover, the value of the G.P.S. technology to customers would outweigh any privacy expectations on the part of drivers, he found.

The technology requirements were the main reason the Taxi Workers Alliance called a two-day strike on Sept. 5 and 6. While many drivers participated in the walkout, others did not and the strike exposed the longstanding divisions in the historically fragmented taxi industry.

City Room has blogged about the changes in the cab industry and the impact of the strike. The decision today is a blow for the Taxi Workers Alliance.

Naureen Rashid, a lawyer for the New York Taxi Workers Alliance, noted that while the judge refused to grant a restraining order or injunction, the lawsuit remained in effect. He said the eight cab owners and drivers would continue to press their case. “This is not the end of this case — in fact, it is only the beginning,” she said in a statement. “The judge ordered both sides to appear for a conference on Oct. 10, 2007 to set a discovery schedule. Ultimately, we will show that the T.L.C. is violating the rights of the taxi drivers who make this city run.”

But Paula Van Meter, a lawyer for the city, expressed satisfaction with Judge Berman’s ruling. “We are pleased that this program of benefits to taxi passengers can proceed as scheduled on Monday,” she said in a statement. “The court’s decision addressed all of the legal arguments raised in the case and detailed the reasons why plaintiffs failed to prove their arguments that these requirements were unconstitutional.”

On a taxi ride to LaGuardia with a fare of $28 plus $4 for the toll, I used my credit card for the bill and gave the driver a $3 tip…he came charging out of his cab, screaming at me that the credit card cost him 8% and the tip was therefore too low…my response…next time you will get nothing.

There may occur more problems when credit cards are to be used in taxis when charging their passengers. I think it would be best to test this kind of transaction within a sample population first before casting it out.

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